Airport prestige transfer: Malmampus transfer to UMG will cost the state an estimated $3.8 billion
In a move that will add a few more flights to the UMG’s itinerary, the state announced on Thursday that it would transfer $1.9 billion in prestige transfer fees to the state of Michigan in exchange for a $3 billion airport transfer.
The UMG is currently the only airport in the state with two airports, one in Kalamazoo and the other in Lansing.
The two airports account for a majority of the state’s international arrivals and the transfer would allow the state to continue to serve the other airport.
The transfer, which is being called the Airport Prestige Transfer Program, would increase UMG revenue from $3,829 million in 2016-17 to $5,946 million in 2021-22.
The transfer will allow the UMF to keep the other two airports open, which would allow UMG to continue operating two of its three new airports in the region.
The three new facilities would have the capacity to handle 10 million passengers annually.
The airport transfer is being funded with $3 million from the airport transfer fee to fund the expansion of the UMFS.
The state of Minnesota will use the remaining $2 million to continue funding a new airport at the University of Minnesota.
The UMF will have $1 million in cash and $300,000 in bonds to fund construction of the new facility.
Michigan Governor Rick Snyder (R) and President Theo P. Muenzer (R), announced the transfer on Thursday, and said that the transfer was a win for Michigan.
“I want to thank the Legislature and Governor Snyder for the trust that we have placed in them to keep UMG operating at the best of times, but with the right infrastructure and funding, we can and will expand our capacity,” Snyder said in a statement.
“The airport transfers have allowed the UMFG to focus on making Michigan the best state-run airport in America.”
“We are committed to bringing more flights into Michigan and our partners across the nation will continue to benefit from the increased capacity the UMFI brings to the region,” Muenzler added.